Richard Branson Meets Mother Teresa – What Does It Take to Build a Successful Social Enterprise?

A recently published European Social Enterprise Monitor report reveals that only one-third of social enterprises in Europe are financially sustainable. While most of them would not survive without grants, it is important to remember that this form of entrepreneurship is not just about profit – it serves a vital social mission and delivers significant non-material value. Latvia offers many inspiring examples of social enterprises that help vulnerable groups integrate into the labor market and society as a whole.

Measuring Impact Beyond Profitability

To assess the true impact of social enterprises, we need to look beyond financial results. The report highlights that 43.5% of social enterprises employ people with disabilities, playing a crucial role in creating an inclusive labor market. More than half of these enterprises also involve at least one volunteer in their daily work, strengthening local communities and fostering civic participation. The core mission of a social enterprise is not profit, but solving a specific social problem – ultimately reducing the pressure on social welfare systems.

The Need for Greater Investment

For some, the fact that only a third of social enterprises are profitable may sound discouraging. However, it is important to recognize that such businesses often require significant investments not needed in traditional enterprises. For example, employing people with disabilities requires adapting the workplace, which demands financial resources. Many social enterprises also need to provide training for employees who may lack prior experience not only in the industry but in the workforce altogether.

Products and services offered by social enterprises are often priced lower than those of traditional businesses – influenced by quality, delivery speed, and other factors. It is often said that to run a successful social enterprise, the leader needs to be part Richard Branson and part Mother Teresa. Yet many founders do not have business experience; they often come from the non-profit sector or have a personal connection to the social issue they are trying to address. As a result, they may not even identify themselves with the traditional business world.

Education that Bridges Business and Social Impact

One of the key factors ensuring that social enterprises not only support society but also operate sustainably in the long term is education. Recognizing the importance of these businesses in the European economy, the School of Business and Culture has launched a Master’s program in Circular Economy and Social Entrepreneurship. The two fields are closely connected – both are built on responsibility for the future and shared values. Social enterprises address issues such as unemployment, social inclusion, health, and the environment, while circular economy initiatives tackle resource efficiency and sustainability.

Positive Examples from Latvia

 

Latvia is home to many successful and inspiring social enterprises. One example is the NGO Cerību spārni (“Wings of Hope”), which, in addition to its activities and services, established a social enterprise and charity shop Visi var (“Everyone Can”). The shop sells products made by people with disabilities, and the proceeds go toward charitable projects and employment initiatives for those with disabilities and others unable to work full-time. The impact of such initiatives extends far beyond what may seem visible at first glance. According to the European report, the most common sectors for social enterprises are healthcare and social services (29.4%) and education (25.2%). However, in practice, a social enterprise can be launched in almost any field – even in areas like artificial intelligence. A notable example is the Intellect Development Center, which focuses on cognitive skill development.

From Young Mothers to Seniors

Like in other European countries, Latvia has diverse social risk groups – people with disabilities, pre-retirement workers, ex-offenders, seniors, young mothers, and single parents. While these groups may seem very different, they share common challenges in entering and remaining in the labor market. In many cases, social enterprises provide the only opportunity for these individuals to work, socialize, and participate fully in society.

Courage, Strategy, and Empathy

A successful social enterprise requires both entrepreneurial courage and strategic thinking, as well as empathy and social responsibility. Only by combining these qualities is it possible to create a sustainable business that not only addresses pressing societal and environmental challenges but also ensures long-term growth and inspires others to follow the same path.